The transactions completed by Music Depot during November 2015 were described at the end of Chapter 1. The following transactions were completed during December, the second month of the business€™s operations:
December 1. Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period.
2. Received $1,250 on account.
3. On behalf of Music Depot, Pat signed a contract with a local radio station, CHBD, to provide guest spots for the next three months. The contract requires Music Depot to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to CHBD at $40 per hour. In accordance with the contract, Pat received $7,200 from CHBD as an advance payment for the first two months.
3. Paid $250 on account.
5. Purchased office equipment on account from One-Stop Office Mart, $6,000.
8. Paid for a newspaper advertisement, $200.
11. Received $900 for serving as a disc jockey for a party.
23. Served as disc jockey for a party for $2,500. Received $760, with the remainder due January 4, 2016.
31. Paid $1,400 royalties (music expense) to Society of Composers, Authors and Music Publishers of Canada (SOCAN) for use of various artists€™ music during December.
31. Withdrew $1,500 cash from Music Depot for personal use.
Music Depot€™s chart of accounts and the balance of accounts as at December 1, 2015 (all normal balances), are as follows:

Instructions
1. Enter the December 1, 2015, account balances, noting if it is a debit or credit. Write Balance in the Item column and place a check mark () in the Posting Reference column.
2. Analyze and journalize each transaction in a two-column journal, omitting journal entry explanations.
3. Post the journal to the ledger, extending the account balance and noting whether it is a debit or credit after each posting of the balance.
4. Prepare an unadjusted trial balance as at December 31, 2015.

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1010 Caslh 1020 Accounts Receivable 1040 Supplies 1050 Prepaid Insurance 1070 Office Equipment 2010 Accounts Payable $10,550 1.250 700 2020 Unearned Revenue 3010 Pat Sharpe, Capital 3020 Pat Sharpe, Withdrawals 4010 Fees Earned 5040 Music Expense 5050 Advertising Expense 9,000 500 4,850 1,000 450 600